RESTRICTED  
  
WT/TPR/G/ 402 
10 Novem ber 2020 
(20-8007) Page: 1/15 
Trade Policy Review Body  Original: English  
 
TRADE POLICY REVIEW  
REPORT BY  
MACAO, CHINA 
Pursuant to the Agreement Establishing the Trade Policy Review Mechanism (Annex 3 of the 
Marrakesh Agreement Establishing the World Trade Organization), the policy statement by 
Macao,  China  is attached.  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Note: This report is subject to restricted circulation and press embargo until the end of the first  session of the 
meeting of the Trade Policy Review Body on Macao, China . WT/TPR/G/ 402 • Macao, China   
 
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  Contents  
1   OVERVIE W ................................ ................................ ................................ ..................  3 
2   MAIN INSTITUTIONAL DEVELOPMENTS  ................................ ................................ ...... 3 
2.1   Legal Framework  ................................ ................................ ................................ .........  3 
2.2   Partic ipation in the Multilateral Trading System  ................................ ...............................  3 
2.3   Reform of Public Administration and Other Institutional Developments  ...............................  4 
3   RECENT ECONOMIC DEVELOPMENTS  ................................ ................................ ...........  4 
3.1   Macroeconomic Developments  ................................ ................................ ......................  4 
3.2   Structural Developments  ................................ ................................ ..............................  5 
3.3   Other Developments  ................................ ................................ ................................ .... 6 
4   TRADE AND INVESTMENT POLICIES  ................................ ................................ ............  6 
4.1   Bilateral Trade Agreements  ................................ ................................ ...........................  6 
4.1.1    Mainland and Macao Closer Economic Partnership Arrangement (CEPA)  ...........................  6 
4.1.2    Hong Kong Special Administrative Region and Macao  Special Administrative Region Closer 
Economic  Partnership Arrangement (HK -Macao CEPA)  ................................ .............................  7 
4.2   Regional Cooperation  ................................ ................................ ................................ ... 7 
4.2.1    The "Belt and Road" Initiative  ................................ ................................ ....................  7 
4.2.2    Guangdong -Hong Kong -Macao Greater Bay Area (GBA)  ................................ .................  8 
4.3   Other Trade and Trade -Related Policies  ................................ ................................ ..........  8 
4.3.1    Customs procedures ................................ ................................ ................................ .. 8 
4.3.2    Import licensing procedures  ................................ ................................ .......................  8 
4.3.3    Consumption tax  ................................ ................................ ................................ ...... 9 
4.3.4    Foreign investment policies  ................................ ................................ ........................  9 
4.3.5    Intellectual property rights  ................................ ................................ .........................  9 
4.3.6    Government procurement  ................................ ................................ ......................... 10 
4.3.7    Competition policy  ................................ ................................ ................................ ...10 
4.3.8    E-Commerce  ................................ ................................ ................................ ........... 10 
4.3.9    Support for small and medium -sized enterprises (SMEs)  ................................ ............... 11 
4.3.10    Construction of new control points  ................................ ................................ ........... 11 
5   SECTORAL DEVELOPMENTS  ................................ ................................ .......................  12 
5.1   Manufacturing Industries  ................................ ................................ ............................. 12 
5.2   Gaming  ................................ ................................ ................................ ..................... 12 
5.3   Tourism  ................................ ................................ ................................ ..................... 13 
5.4   Financial Serv ices ................................ ................................ ................................ .......13 
5.5   Telecommunications  ................................ ................................ ................................ ...14 
5.6   Other Key Focus Industries  ................................ ................................ .......................... 14 
5.6.1    Conventions and exhibitions (MICE)  ................................ ................................ ........... 14 
5.6.2    Traditional Chinese medicines (TCM)  ................................ ................................ .......... 15 
6   PROSPECTS  ................................ ................................ ................................ ...............  15 
 
 WT/TPR/G/ 402 • Macao, China   
 
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1  OVERVIEW  
1.1.  Macao, China  is pleased to present its fifth Trade Policy Review at the World Trade Organization 
in the spirit of transparency to introduce the development of the M acao Special Administrative Region 
(MSAR)  in respect of trade and trade -related areas since our previous review in 2013.  
1.2.  Macao, China embodies moderate economic diversification at the core of its economic policies. 
As a small and open economy, Macao, China adopt s an outward -oriented  approach by attracting  
foreign investment and supporting domestic enterprises to go global.  In this connection, the MSAR 
has underscored  its position  as "One Centre, One Platform ", with the "One Centre " being the World 
Centre of Tourism and Leisure, and the "One Platform " being the Commercial 
and Trade  Cooperation  Service Platform between China and Portuguese -speaking Countries.  This 
position ing has been underpinned by the Five -Year Development Plan of the MSAR (2016 -2020) as 
the core objective for economic development . 
1.3.  With openness in our development perspective, Macao, China remains supportive of the 
rules-based multilateral trading system and, simultaneously, explore s cooperation opportunities with 
neighbouring regions.  During the period  under review , Macao, China  has renewed  its trade 
agreement with  the Mainland of China, sign ed a free trade agreement with Hong Kong, China  and 
actively participate d in the development of the Guangdong -Hong Kong -Macao Greater Bay Area,  
which is the joint development strategy of th e Guangdong Province of China and the two Special 
Administrative Regions of Hong Kong and Macao . 
1.4.  On the other hand, the MSAR Government also strives to reform public administration, optimi ze 
the economic and social environment by restructuring the functions of various government bureaux, 
introducing new laws concerning  arbitration, public finance, tax , trade facilitation, financial services, 
environment al protection , social security system , government administration  and so on.  
1.5.  In addition to the new economic and social measures, the State Council of the People 's Republic 
of China  issued a decision in December 2015 affirming, for the first time, the jurisdiction of the MSAR 
over the 85 square kilometres  of the maritime area surrounding its land area . Since then, the 
administrative area of the MSAR has been expanded, empowering the government  to develop and 
administ er the surrounding maritime area under its jurisdiction . 
2  MAIN INSTITUTIONAL DEVELOPMENTS  
2.1  Legal Framework  
2.1.  Since China resumed its exercis e of sovereignty over Macao  in 1999, the Basic Law has been  
the constitutional document of the MSAR and no subsequent amendments  have been made.  The 
Basic Law stipulates the high degree of autonomy of the MSAR under the principle of "One Country, 
Two Systems ", that the MSAR will maintain its status as a separate customs territory, a free port 
with zero tariff, free movement of goods, intangible assets and capital , freely -convertible currency 
and independent taxation system.  
2.2  Participation in the Multilateral Trading System  
2.2.  As an original  Member of the WTO,  Macao, China remains committed to the rules -based 
multilateral trading system  by maintain ing the consistency of its trade measures and practice s with 
the WTO rules , formulat ing and implement ing its trade policy with the aim to promote a free and 
open trad e environment,  and uphold ing its support to the further liberali zation of global trade.  
2.3.  In respect of transparency, Macao, China has fulfilled its obligations to submit  notifications  to 
keep Members informed of the changes in trade polic ies, including informing  the WTO in a timely 
manner of its trade -related measures adopted during the COVID -19 pandemic  to enhance the 
transparency of such measures . In respect of acceptance of new init iatives, Macao, China completed 
the ratification of the Agreement on Trade Facilitation (TFA)  in 2016  with all facilitating measures 
there in duly implemented on 13 November  2019; while the ratification of the Protocol A mend ing the 
Trade -Related Aspects of Intellectual Property Rights (TRIPS) Agreement , which aim ed at improving 
developing Members ' access  to affordable medicines , was completed in 2017. Furthermore, 
Macao,  China join ed the expansion of the Information Technology Agreement (ITA II)  and completed WT/TPR/G/ 402 • Macao, China   
 
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  the modification of the tariff schedule in December 2016.  During the Eleventh Ministerial Conference  
(MC11) , Macao, China has actively engaged in the discussions of Investment Facilitation for 
Development  and will strive to achieve  a concrete outcome on this initiative at the Twelfth Ministerial 
Conference  (MC12) .  
2.3  Reform of Public Administration and Other Institutional Developments  
2.4.  With the objective to develop  a service -based government that facilitates residents and 
businesses, th e MSAR Government has initiated public administration reform to streamline 
administrati ve procedures and straighten out the functions of respective bureaux  so as  to better 
serve its policy objectives . The MSAR Government has made a series of  public adminis tration  
restructuring , including  the inauguration of the Public Assets Supervision Planning Office of the 
MSAR, the transposition of the Civic and Municipal Affairs Bureau to the Municipal Affairs Bureau , 
the merging of the Macao Post and Bureau of Telecommunications Regulations into the Macao Post 
and Telecommunications Bureau , as well as  the supervision entity of the Macao Government Tourism 
Office is changing from the Secretariat for Social Affairs and Culture to the  Secre tariat for Economy 
and Finance . In addition, the scope of responsibility of the Macao Economic Bureau will be extended 
to technology areas.  
2.5.  The MSAR Government has promulgated a number of new laws to improve the operation of 
public administration and optim ize the trade environment.  Among them, the Arbitration Law (Law 
No. 19/2019) serves to enhance  the efficiency in handling disputes; the Budget Framework  Law 
(Law No. 15/2017) stipulates and regulates the compilation, audit, approval, implementation and 
amendment of the government budget; the Legal Regime of  Financial Leasing Companies (Law 
No. 6/2019) redefines and regulates financial leasing companies in  the MSAR; Amendment to the  
Foreign Trade Law (Law No. 3/2016)  introduces  enhanced trade measures ; the Maritime Area 
Management Framework Law (Law No. 7/2018) stipulates the goals and principles in managing the 
maritime  area in supporting the sustainable d evelopment of the MSAR ; the Electronic Governance 
(Law No. 2/2020)  will also take effect in September 2020, marking a milestone of the MSAR 's 
e-government  development . 
2.6.  On the front of tax cooperation, Macao, China is a member of the Global Forum on Transparency 
and Exchange of Informa tion for Tax Purposes. In 2017, the MSAR Government promulgated the 
Legal Regime for  the Exchange of Tax Information (Law No. 5/2017)  to enable automatic exchange 
of information with other partner jurisdictions.  With China extending the application of the 
Convention on Mutual Administrative Assistance in Tax Matters (MAC) to the MSAR, Macao, China  
became  a signatory of the Multilateral Competent Authority Agreement on Automatic Exchange of 
Financial Account Information (MCAA) in September 2018.  As of 2019, the MSAR Government has 
signed 16 Tax Information Exchange Agreements (TIEA s) and 13 Double Taxation  Agreement s (DTA) 
with other tax jurisdictions , of which one is on aviation enterprises . 
2.7.  Macao, China also joined the Inclusive Framework on Base Erosion and Profit Shifting (BEPS) 
in November 2016  and has endorsed the BEPS minimum standards.  With all thes e efforts , 
Macao,  China has been considered to be  a tax jurisdiction compl ying with the EU standards since  
March 2019  and will adopt most of the OECD 's recommendations in the future . 
3  RECENT ECONOMIC DEVELOPMENTS  
3.1  Macroeconomic Developments  
3.1.  Since Macao  returns  to China , the MSAR has experienced rapid economic growth, with gaming 
and tourism sector s as important pillar s. This trend, however, was disrupted by economic  
fluctuations  during the period under  review . Three consecutive  years of economic contraction 
abruptly came on the heels of the economy 's phenomenal growth in 2013, with its GDP slumping 
1.2%, 21 .6% and 0.7% respectively in 2014, 2015 and 2016 , as a result of weakening demand for 
gaming and tourism. The economy was then rejuvenated  by the uptick of external demand , and its 
GDP expanded by 9.9% in 2017 and 5.4% in 2018.  In 2019, Macao , China 's GDP shrank by 4.7% 
in real terms, dragged down by falling investment and service exports . The GDP at current market 
prices amounted  to MOP 434.7 billion (US D 53.9 billion)  in 2019.  
3.2.  The global economic slowdown and uncertain trade environment have posed negative impact 
on Macao, China 's economy . Coupled with  the COVID -19 outbreak in early 2020,  the increasingly WT/TPR/G/ 402 • Macao, China   
 
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sagging  external demand  is projected to further slow down the gaming and tourism sectors in the 
short term . The economy is still expected to moderately expand over the medium term , with the 
recovery of the tourism  and leisure industry  and appropriate increase in public investment . 
3.3.  Macao, China  has high openness to trade, with  its trade-to-GDP ratio  equivalent to about 115% 
of GDP on average  during the period from 2013 to 2019. In 2019, imports  of goods grew by 1.1%, 
accounting for 88.1% of total merchandise trade , while exports contracted by 8.3%; for the first 
quarter of 2020, imports of goods dropped by 30.8% year-on-year, accounting for 85.2% of total 
merchandise trade,  and exports dropped  by 23.5%. Total imports and exports of s ervices in 2019 
amounted to MOP  385.8  billion (US D 47.8 billion) , about 90.3% of which was exports of service s; 
for the first quarter of 2020, total imports and exports of services amounted to MOP 43 billion 
(USD 5.3 billion) . During the period from 2013 to 2019, exports of services grew at an average 
annual rate of 0.5% , and imports of services  grew at an average annual rate of 4.6%. 
3.4.  The MSAR G overnment strictly adheres to the Basic Law 's mandate of maintaining balanced 
budgets, which  lays the cornerstone to sustain prosperity and long -term development  of the 
economy . The fiscal position of the MSAR Government remains strong with no public debt. Surplus 
for 2018 was MOP  58.3 billion (US D 7.2 billion) or 13.1% of GDP. By the end of  2019, the 
accumulated fiscal reserves amounted to MOP  579.4  billion (US D 71.79  billion), representing 
approximately 133% of GDP.  
3.5.  Due to  the decreas e in gaming  tax revenue and the concurrent  increase in spending  in 2020 
as a result of the COVID -19 pandemic , it is expected that the MSAR Government will have its 
first budget deficit since its establishment . In spite of this, the sufficient financial reserves allow the 
MSAR government to timely adopt proactive fiscal policies to mitigate the pandemic 's impact on the 
economy.  
3.6.  As a small and open economy, Macao , China  has a credible exchange rate regime as an anchor 
for its monetary and financial stability. The existing Linked Exchange Rate System  (LERS) , which tie s 
the M SAR currency, Macao pataca  (MOP) , to Hong Kong dollar at a rate of MOP 1.03 to HK D 1.00 
and implicitly to  USD 1.00 at a rate of MOP  8.00, has been implemented for over three decades and 
the IMF has reaffirmed its support for the LERS and envisaged that it remains well -suited for 
Macao, China. Under the currency board arrangement, the Macao pataca is fully backed by foreign 
exchange reserves. There are no exchange restrictions on current and capital account transactions 
in Macao, China.  
3.7.  The IMF recogni zed that Macao, China has strong  fiscal and external financial positions, which 
greatly help  stabili ze the economy and reduce external vulnerabilities emanating from global 
economic uncertainties.  Currently , the long -term credit ratings of Macao, China are  "Aa3" by Moody 's 
and "AA" by Fitch.  
3.2  Structural Developments  
3.8.  The service sector is the mainstay of Macao, China 's economy . Between  2013 and 2018, the 
average proportion of the service sector in total gross value added was 94. 6%, mainly contributed 
by the  gaming sector , real estate activities, financial sector, distribution sector, renting and business 
activities, and hotel sector.  Under the objectives and strategies of moderate economic diversification  
of the MSAR , it is notable  that the proportion of gaming industry in total gross value added has 
declined from 63.1% in 2013 to 50.5% in 2018 . 
3.9.  Apart from the service sector, the average proportion of gross value added of the production 
and construction  sector in total gross value added was 5. 4%. Meanwhile , 4.3% was from the 
construction  sector , 0.6% f rom the  utilities sector1 and 0.5% f rom the  manufacturing  sector during 
the period from 2013 to 2018. 
3.10.   The importance of economic diversification to sustainable development has received  broad 
consensus across society  and t he MSAR G overnment has endeavo ured to diversify the econom y 
through promoting regional cooperation and nurturing emerging industries. These two paths are built 
on the advantages of the MSAR 's strategic positioning as the "World Centre of Tourism and Leisure " 
and the "Commercial and Trade Cooperation Service Platform between China an d Portuguese -
 
1 Electricity, gas and water supply.  WT/TPR/G/ 402 • Macao, China   
 
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  Speaking Countries ( PSCs)". Meanwhile, the government supports small and medium -sized 
enterprises (SMEs) to improve their competitiveness and assists youth in starting business as well.  
3.3  Other Developments  
3.11.   With the objective to lay out a compre hensive blueprint for the development of Macao , China  
that stretches over the economic, social, environmental and public administration aspects, the MSAR 
Government launched the Five -Year Development Plan  of the M SAR (2016 -2020)  (the "Development 
Plan") in September 2016.  The Development Plan is the first and foremost attempt for the MSAR 
Government to set a broad array of goals for the government bureaux to follow. Prior to the 
promulgation of the Development Plan, the MSAR G overnment initiated a public consultation in the 
second quarter of  2016 to collect opinions from  the general public . 
3.12.   The Development Plan aims to foster the establishment of "One Centre,  One Platform " by 
developing the MSAR into a resident -friendly, business -friendly, commuter -friendly, tourist -friendly 
and entertainment -friendly city. To achieve these objectives, the Development Plan has rolled out 
the goals , which are maintaining the stable development of the overall econom y, optimizing the 
industrial structure,  improving people 's quality of life, improving the quality of education, and 
enhancing the efficiency and effectiveness of environmental protection, to name a few .  
3.13.   In order to have an objective assessment of the impl ementation of the Development Plan, a 
third-party assessment mechanism has been  devised thereof.  By the end  of 2018, the average 
completion rate for the annual implementation plan  was 90.3 % according to the mid -term 
assessment released by the MSAR Governme nt in October 2019 . 
3.14.   Taking into account the positioning of "One Platform " and development strategies of the 
Mainland of China , PSCs and the MSAR , the MSAR is currently forging the development of a 
"commercial and trade service centre for SMEs  between China and PSCs ", a "food product distribution  
centre  for PSCs ", as well as a "convention and exhibition centre for economic and trade cooperation  
between China and PSCs ". Among other things, the "One Platform " also serves as a cultural exchange 
platform between East and West as well as  renminbi ( RMB) clearing platform  for PSCs. In this 
context, t he MSAR Government provides a variety of services to PSCs enterprises wishing to tap into 
the Mainland of China 's market and businesses from the Mainland of China, the MSAR and other 
regions intending to expand markets in the PSCs.  
3.15.   One of the objectives of  the Development Plan is to improve the quality of life of Macao 
residents . To this end, the MSAR government has established a two -tier social security system, the 
first of which is composed of a social security system operated on the principle of social i nsurance 
to ensure the basic retirement life of all Macao residents , while the second of which is a 
non-mandatory central provident fund system  operat ing as a savings -based pension scheme to  
provid e residents with an extra cushion for retirement.   
3.16.   Protecti on of the environment is another  fundamental in cultivating the MSAR as a more 
liveable city under the Development Plan.  In recent years, waste management and improvement of 
air quality are the two main areas of concern of the MSAR Government. With respect to treatment 
of waste , the MSAR Government promote s the "polluter  pays" principle, encourage s the reduction 
and recyclin g of plastics as well as other wastes, optimi zes the recycling facilities and other 
environmental protection infrastructure s. Placing great emphasis upon waste reduction at source , 
the MSAR Government introduced a levy on  plastic bag s in November 2019 , and launched a new 
recycling program in January 2020 for electronic and electrical devices. On improvement of air 
quality, the MSAR Government has raised the vehicle emission standards  intending to reduc e 
exhaust emissions from motor vehicles . 
4  TRADE AND I NVESTMENT POLICIES  
4.1  Bilateral Trade Agreements  
4.1.1   Mainland and Macao Closer Economic Partnership Arrangement (CEPA)  
4.1.  The Mainland of China and Macao, China signed the "Mainland and Macao Closer Economic 
Partnership Arrangement " (CEPA) on 17 October 2003. The two sides signed ten Supplements to WT/TPR/G/ 402 • Macao, China   
 
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CEPA later on between 2004 and 2013 to broaden the scope of liberali zation. Since 2014 and with 
the aim to enhance and consolidate the preferential measures under CEPA, the two sides have also 
signed five subsidiary agreements, namely, the "Agreement between the Mainland and Macao on 
Achieving Basic Liberali zation of Trade in Services in Guangdong " (signed in 2014), the "Agreement 
on Trade in Services " (signed in 2015  and revised  in 2019 ), the "Investment Agreement " and the 
"Agreement on Economic and Technical Cooperation " (both signed in 2017), and the "Agreement on 
Trade in Goods " (signed in 2018).  
4.2.  CEPA is a comprehensive free trade agreement that covers Trade in Goods, Trade in Service s, 
Investment, as well as Economic and Technical Cooperation. Under CEPA, the Mainland of China 
agrees to apply zero tariff s to all goods originated from Macao, China  upon fulfilment of the CEPA 
rules of origin starting from January 2006, except for goods that are prohibited from importation into 
the Mainland of China with the level of customs clearance facilitation being further enhanced. On 
Trade in Services,  the Mainland of  China has fully or partially opened up 153 sub -sectors to 
Macao,  China, ac counting for 95.6% of the service sub -sectors under the W/120 Services 
Classification of the WTO. On Investment, the two sides have committed to offer ing an internationally 
high level of investment protection in conformity with the principle of "One Countr y, Two Systems ", 
with market access commitments expanded to non -service sectors. On Economic and Technical 
Cooperation, the two sides agreed to strengthen cooperation in 14 key areas, such as tourism, 
convention and exhibition, traditional Chinese medicine  (TCM), finance, innovation and technology, 
SMEs, intellectual property rights as well as promoting economic and trade cooperation under the 
"Belt and Road " Initiative and other sub-regional cooperation programs.  
4.1.2   Hong Kong  Special Administrative Region and  Macao  Special Administrative Region 
Closer Economic  Partnership Arrangement  (HK-Macao CEPA)  
4.3.  The Hong Kong SAR and Macao SAR Closer Economic Partnership Arrangement was signed 
between Hong Kong, China and Macao, China on 27 October 2017.  Being two economies with a 
long-standing relationship, the HK -Macao CEPA was signed with a view to further strengthening trade 
ties and economic and technical cooperation between the two places. The HK-Macao CEPA covers 
both Trade in Goods and Trade in Ser vices, as well as an Economic and Technical Cooperation Work 
Programme.  
4.4.  Under the umbrella of the Agreement , the two sides committed to continue applying zero tariffs  
and pledged not to apply non -tariff measures inconsistent with WTO rules to goods origina ted from 
the other side . While both sides have undertaken commitments that go beyond those under the WTO, 
Macao, China has made new commitments with respect to the movement of natural persons, 
business services, communication services, distribution service s, education services, environmental 
services, recreational, cultural and sporting services , as well as transport services.  
4.2  Regional Cooperation  
4.5.  Macao, China actively participates in regional cooperation to help overcome the limitation of 
small domestic market size and thus attain moderate economic diversification. Key areas of 
cooperation include investment, finance, tourism, convention and exhibition, science and technology, 
SMEs and you th entrepreneurs hip. Apart from participating in the "Belt and Road " Initiative and the 
development of the Guangdong -Hong Kong -Macao Greater Bay Area  (GBA) , Macao, Chin a is open to 
seeking more regional cooperative partnerships and welcomes other parties to join its regional  
cooperative programs under the principle of economic complementarity and mutual benefit.  
4.2.1   The "Belt and Road " Initiative  
4.6.  In 201 8, the National Development and Reform Commission of China and the MSAR 
Government signed the Arrangement for Advancing Macao 's Full Participation in and Contribution to 
the "Belt and Road " Initiative ( the "Arrangement "), which focuses on financial cooperatio n, economic 
and trade exchanges and cooperation, and development of the GB A.  
4.7.  Under the Arrangement, Macao, China gives full play to its resources and provides investment 
and financing services for the "Belt and Road " Initiative development. Macao, China actively provides 
assistance to  PSCs or organizations engaging in RMB financial busine ss and plays the role as a 
RMB clearing platform between China and PSCs. Macao, China promotes the conjoining of "One 
Centre, One Platform " and the "Belt and Road " Initiative through participating in regional trade WT/TPR/G/ 402 • Macao, China   
 
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  cooperation and other non -sovereign inter national professional organizations, and hosting a 
high-level "Belt and Road " Initiative development theme d forum and international exhibitions.  
4.2.2   Guangdong -Hong Kong -Macao Greater Bay Area  (GBA)  
4.8.  Under  the principle of "One Country, Two Systems ", the MSAR Government has participated in 
the drawing up of a development plan for the GBA with the National Devel opment and Reform 
Commission of  China, People 's Government  of Guangdong Province of China and the Hong Kong SAR 
Government. The main objectives of t he development plan are to coordinate the development and 
define the positioning of the cities in the GBA, fully leverage on the composite advantages of each 
city, as well as facilitate the cross -boundary and regional flow of factors of production.   
4.9.  The MSAR is to develop into a world -renowned  tourism and leisure centre, a commerce and 
trade cooperation service platform between China and PSCs, and a multicultural exchange and 
cooperation base with an emphasis on Chinese culture. In order to better capitali ze on the role as a 
platform bridging China and PSCs, the MSAR is determine d to make full use of its advantages by 
building close ties with PSCs, with the aims to help bringing in PSCs investments to the GBA and the 
Mainland of China, as well as facilitating  investors of the Mainland of China reaching out to the 
markets of PSCs, EU, South America, Africa and countries along the "Belt and Road ". 
4.3  Other Trade and Trade -Related Policies  
4.3.1   Customs procedures  
4.10.   Macao, China is determined to provide a level -playing field for all traders and maintains 
de minimis  import and export control measures. Adhering to its free trade policy, Macao, China 
applies neither tariff nor other taxes on imports and exports, making i t one of the most liberali zed 
Members of the WTO. With the absence of any laws concerning anti -dumping, countervailing or 
safeguards, no such duties or measures have ever been applied. Declarations on import, export and 
re-export can be  made through the El ectronic Data Interchange (EDI) system, which makes the 
customs procedures more convenient for traders and fulfils part of the requirements under the 
Agreement on Trade Facilitation of the WTO.  
4.3.2   Import licensing procedures  
4.11.   Pursuant to the Foreign Trade Law  (Law No. 7/2003), goods regulated by the licensing regime 
and specific legislation of the MSAR are subject to prior import authori zation, which are mainly for 
health, safety, environmental and  public  security reasons. Goods covered by the licensing regime  
are live animals, meat, fish, vegetables, pharmaceutical products and medicines, milk for infant 
feeding, alcoholic beverages, tobacco , vehicles, telecommunication apparatus, arms and 
ammunition, among others. The import licensing regime  for petroleum products has also been 
implemented since February 2015.  In compliance with international obligations, the MSAR also 
imposes import licensing requirements or prohibitions on narcotic drugs and psychotropic 
substances, ozone -depleting substanc es, endangered species of animals and plants, chemical 
substances and their precursors, and hazardous wastes.   
4.12.   As no tariff is levied on imports, Macao, China has neither preferential nor non -preferential 
rules of origin for imports and thus, no Certificat e of Origin is required for imports of goods.  
4.13.   With the adoption of the Agreement on Trade Facilitation in WTO, establishing trade -facilitating 
border measures to optimi ze the trade environment has become a global phenomenon. In this 
connection, the MSAR G overnment amended the Foreign Trade Law and its relevant administrative 
regulations in 2016 by adopting a number of enhanced measures, namely, allowing businesses or 
individuals to use the A.T.A. carnet as a single document for tax-free import and export c learance, 
introducing Transit Licence for goods subject to transit control, cancelling licensing requirement for 
export of textiles and garments to the EU, Norway, Turkey and the U.S. as well as introducing 
expeditious clearance measures by allowing the su bmission of electronic declaration after clearance 
of goods subject to import  or export declaration.  WT/TPR/G/ 402 • Macao, China   
 
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4.3.3   Consumption tax 
4.14.   Consumption tax is an indirect t ax levied on domestic consumption . Goods that are subject to 
consumption tax in Macao, China are beverages of alcoholic content  of not less than 30% and tobacco 
products, with the former taxed at a  rate of 10% and the latter at different  unit tax rate s. In an effort 
to promote a smoke -free environment, the tax on tobacco products was raised by 200% in 2015 
(Law No. 9/2015) . 
4.3.4   Foreign investment policies  
4.15.   Macao, China has long been a free port with minimal trade restrictions. This policy has been 
stipulated under Article s 110 and 111 of the Basic Law that the MSAR will maintain the status of a 
free port and pursue the policy of free trade and safeguard the free movement of goods, intangible 
assets and capital.  
4.16.   The MSAR Government maintains no restrictions on the setting up of foreign companies with 
their presence easily found  in different sectors of the e conomy, for instance , telecommunications, 
electricity, water supply, public transport, banking and insurance, building and constructions, 
gaming, hotels  and retailing. Thus, foreign investment contributes to the economic development of 
Macao , China  by brin ging in not only capital but also state -of-the-art technology and management 
skills.  
4.17.   The simple and low tax system adopted by the MSAR helps to attract  foreign investment. The 
MSAR Government implements exemption of business registration tax ; while  profit tax ranges from 
3% to 12% with an exemption threshold of MOP 600,000 in taxable income . Expenditure on 
innovation, science and technology research as well as R esearch and Development  can be tripled 
and doubled as deduction s for taxable income . Furthe rmore, to relieve the  pressure on  businesses 
posed  by the COVID -19 outbreak,  the MSAR Government offers a variety of temporary tax breaks 
to enterprises, such as increasing deductions of profit tax and urban property tax, exempting the 
tourism tax for six months, exempting motor vehicles registered for business operations from 
circulation tax for 2020 and so forth . 
4.18.   To attract foreign investment, the MSAR Government  has launched  "One-Stop Service " to offer 
professional advice to potential foreign investors on Macao , China 's business environment and 
administrative procedures , and to facilitate the implementation of their investment projects in the 
MSAR.  The MSAR Government also designates  personnel to assist  the work comprehensive ly from 
the initial consultation stage  and to  facilitate the proceeding of relevant administrative procedures.  
There are also a ppointed public  notar ies to provide  companies  with set-up and registration services.  
4.3.5   Intellectual property rights  
4.19.   The M SAR Government continues to improve its administrative process concerning  industrial 
properties  registration , e.g. by launching online application service and simplifying application 
requirements. In tandem with the economic development, t rademark applications increased from 
10,084 in 2013 to 15,390  in 201 9. With respect to patent, there is a growing trend that applicants 
increasingly choose patent e xtension over direct filing to have their invention s protected. The p atent 
extension system herein refers to the  cooperation agreement signed between the Mainland of China  
and Macao , China  in 2003. The procedure s of extension are simple , and no further substantive 
examination is required.  
4.20.   Fully recogni zing the profound impact of the development and convergence of information 
and communication technologies on the creation and use of literary, artistic works, performances 
and phonograms, Ma cao, China closely keeps up with  the evolution of global intellectual property 
protection . Thus , WIPO Copyright Treaty and WIPO Performances and Phonograms Treaty , which 
are special agreements under the Berne Convention for the Protection of Literary and A rtistic Works 
to adapt the international protection of copyright and related rights to the Internet age,  have been 
extended to the MSAR since December 2013. Meanwhile, to enhance  the cooperation with the 
Mainland of China in the area of intellectual proper ty, the MSAR  and the Mainland of China  signed 
the Arrangement on Deepening the Exchange and Cooperation in the Area of Intellectual Property 
between the National Intellectual Property Administration and the Macao Economic Bureau of the 
Government of the Macao Special Administrative Region in 2020.  WT/TPR/G/ 402 • Macao, China   
 
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  4.21.   Macao, China continues to step up efforts to protect the interests of Intellectual Property Rights 
(IPR) owners and combat infringing activities. To achieve these objectives , Customs of the MSAR  
strengthens risk assessment in this respect, develops  cooperation with neighbouring regions to make 
enforcement against IPR infringement more efficient , maintains close contact with IPR holders and 
other government bureaux, inspects export and transit goo ds at checkpoints  and enhances  the 
professional knowledge on IPR for the law enforcement officers.  
4.22.   Customs of the MSAR also devotes itself to raising IPR awareness in society. The Community 
Liaison Mechanism Against Counterfeiting was established in 2016 to facilitate Customs of the MSAR 
in communicat ing directly with different communities to help combating IPR infringe ment, while 
school visits and events dedicated to educat ing students of the concept to protect IPR and say "No" 
to piracy have been held . Through these promotional and educational activities, the concept of IPR 
protection in daily lives has been effectively delivered and communications between  the general 
public, students, communities and private enterprises  have been strengthened.   
4.3.6   Government procurement  
4.23.   In 2019, government procurement accounted for a share of 6.2% of the GDP of the MSAR . 
The MSAR government has always strived to maintain its sound , transparent and well -functioning 
government procurement regime  in public administration . The legal system of government 
procurement of the MSAR is composed of three main sets of laws, namely, Legal System of 
Expenditure on Government Procurement Related to Goods, Services and Public Works (Decree -Law 
No. 122/84/M, as amended by Decree -Law No. 30/89/M ), Tendering Procedures of Acquisition of 
Goods and  Services (Decree -Law No. 63/85/M ), and Contracting  Regime of Public Works  
(Decree -Law No. 74/99/M ). 
4.24.   The MSAR Government is in the course of reforming the government procurement regime in 
order to ensure its compliance with international standards and cope with the development of the 
economy. With this objective, a specific task  force was set up with the release of the Document for 
Consultation of the Public Procurement Law in November 2018 and a public consultation of 60 days 
initiated simultaneously. The revision covered several aspects, for instance, transparency, types of 
procurement procedures, thresholds and special requisites for the types of procedures to be selected, 
introduction of e -procurement  and so on . The opinions collected  during the consultation process have 
been circulated in June 201 9 under the Consolidated Report of the Consultation on Government 
Procurement , and will serve as reference s for the MSAR Government in devising  a new government 
procurement law. 
4.3.7   Competition policy  
4.25.   As a free port and open economy, the MSAR spares no effort to ensure fair competition in 
domestic goods and service markets. The Commercial Code, promulgated in 1999  and amended  in 
2015, contain s relevant provisions that safeguard fair competition in the economy.  Provisions under 
the Commercial Code prohibit any agreement or practice that violate s competition regulations or 
restrict competition, and stipulate that the injured party  has the right t o file a lawsuit at court to stop 
unfair competition practice, eliminate relevant effects and claim compensation.  
4.26.   Besides the Commercial Code, provisions that fortify market competition can also be found in 
sector -specific supervisory regulations , especia lly for the industries with a high cost of entry or 
economies of scale . These sectors include gaming services, financial services and 
telecommunications, which have been represent ing a large part of the MSAR 's economic activities.  
4.27.   With all  these regulations being put in place, rules are adequate  and appropriate for ensuring 
fair competition in the economy. The MSAR Government continue s to optimi ze the market 
competition environment by following market -based mechanisms to evaluate  the effect iveness of 
relevant regulations.  
4.3.8   E-Commerce  
4.28.   The MSAR Government is committed to promoting a healthy and sustainable environment for 
e-commerce . With continuing efforts of the MSAR Government and the Guangdong Province of China, 
the logistics channel for cross-border e -commerce between the Mainland of China and the MSAR has WT/TPR/G/ 402 • Macao, China   
 
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opened since 2017 for both goods manufactured in the MSAR and goods from other economies to 
enter the Mainland  of China via the MSAR through cross-border e -commerce.  
4.29.   The MSAR Government has devoted considerable efforts to galvani ze enterprises into the 
usage of mobile payment in their operations, thereby  streamlining the transaction process and 
enhancing consumer  experience.  The number of mobil e-payment devices installed in Macao, China 
increased  substantially  by 437.5% in the first quarter of 2020 compared to the beginning of 2017 . 
Mobile payment is now being used in public transportation, retail shops, restaurants, fresh food 
markets and publi c administration. The soaring number of places accepting mobile  payment, as well 
as numerous marketing campaigns by mobile -payment service providers , have helped speed up the  
populari zation of mobile payment usage . 
4.3.9   Support for small and medium -sized enterprises (SMEs)  
4.30.   The roles of SMEs in terms of employment, innovation and contribution to moderate  economic 
diversification are crucial to the sustainable development of the MSAR . The three supportive 
measures to alleviate SMEs ' difficulties in obtaining financ ing, namely SME Aid Scheme, SME Credit 
Guarantee Scheme , and SME Credit Guarantee Scheme Designated for Special Projects, have been 
enhanced several times to cope with the rapidly changing business environment.  
4.31.   Setting up an upward trajectory for young entrepreneurs to develop and harness  their 
potentials has been an important  task for the MSAR Government.  In 2013, the Young Entrepreneur 
Aid Scheme was launched to provide interest -free loan to local you th start-ups. In tandem with the 
above, the Macao Young Entrepreneur Incubation Centre has been  established to provide all -round 
supporting services and resources, including professional consulting, training and mentoring, 
road-show marketing, investment -capital matching and so forth, to innovators and entrepreneurs. 
The MSAR Government also spares no effort to pro mote exchanges and collaboration among SMEs 
and young entrepreneurs from the Mainland of China, PSCs and the MSAR , in order to seize a broader 
scope of development.  
4.32.   To promote rebranding and sustainable development of the classic brands  in the MSAR , the 
MSAR Government  supports business associations to establish the Macao Classic Brand Reshaping 
Assistance Program. Industry representatives and experts together assist c lassic brands  in brand 
environment research, brand positioning, brand design and brand promotion strategy , and innovate 
based on  inheritance , so as to infuse the brand with modern style and enhance market 
competitiveness.   
4.33.   In view of the impact of the COVI D-19 pandemic on the production and operation of SMEs, to 
mitigate the impact of the pandemic on SMEs, the MSAR Government has taken timely and effective 
economic stimulus measures to provide financial assistance to SMEs. Major assistance measures 
include  a temporary eas ing of  the eligibility criteria for the SME Aid Scheme, launch of the SME Bank 
Loan Interest Subsidy Scheme, early cash disbursement of Wealth Partaking Scheme 2020 , and 
launch of a MOP 10 billion  anti-epidemic fund , which  provide s tax relief and refunds for residents 
and businesses , and issues an e-consumption card to each eligible Macao resident , and so forth, so 
as to stimulate and encourage  local consumption,  thereby boosting the economy.  
4.3.10   Construction of new control points  
4.34.   The Hong Kong -Zhuhai -Macao Bridge (HZMB) , which  links the three places in its name , was 
opened in October 2018 . It is a momentous  and mega  addition to the current eight border 
checkpoints in Macao , China , six of which are operating on a 24-hour basis. The 55km -long HZMB , 
the longest bridge -cum-tunnel sea crossing in the world, provides a new land transport link between 
the Hong Kong SAR and the MSAR . With respect to air transport, Phase I extension of the Macao 
International Airport was completed in 2018 and expected to  increase its carrying  capacity by 30%, 
while Phase II extension was approved in 2019 and is about to get underway. The Taipa Line of 
Macao  Light Rapid Transit (MLRT), which connects the Taipa Ferry Terminal and the Macao 
International Airport t o Cotai district and other parts of Taipa, was operational in 2019, further 
improving the travel environment and connectivity among control points.  
4.35.   In addition, the Cotai Frontier Post, a border checkpoint for entry into Hengqin of Zhuhai of 
China , has bee n relocated to Hengqin Port to enable a joint border control system for enhancing 
border -crossing efficiency, and t he Qingmao Frontier Post , to be completed by 202 1, will be WT/TPR/G/ 402 • Macao, China   
 
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  operational around the clock and supplement the nearly saturated Border  Gate. To improve travel 
experience, both of them  will serve as spur line s to the Guangzhou -Zhuhai Intercity Railway.    
5  SECTORAL DEVELOPMENTS  
5.1  Manufacturing Industries  
5.1.  The MSAR Government has been actively promot ing moderate economic diversification , 
attaching high importance to the development of manufacturing sector . The MSAR Government has 
been supporting industrial upgrade and transformation by promoting "Made in Macao " products, 
encouraging the upgrade and transformation of production by organi zing training and certification 
programs on product development, improvement in production process as well as attainment of 
quality standards.  The Macao Product Quality Certificat ion Scheme, which is a voluntary scheme 
launched in 2018 and aimed at fostering enterprises to adopt product quality certification as the 
means to enhance consumer trust and market competitiveness, supports the development of the 
industrial sector.  
5.2.  During the period under review , the gross value  added of the m anufacturi ng sector as a 
percentage of all economic activities edge d up from 0.4% in 2013 to 0.6% in 2018. Manufacture of 
food products and beverage s is the largest sub -sector ow ing to the rising demand from domestic 
consumers and tourists .  
5.3.  In the external sector, d omestic e xport s accounted for 11.8% of Macao, China 's total exports 
in 2019, and 11.6% for the first quarter of 2020. The major export mar kets for domestically produced 
goods are Hong Kong, China ; the US ; the Mainland of China ; and the EU, which have been collectively 
account ing for 86.5% of the total  in 2019, and 85.9% for the first quarter of 2020. Despite the 
increase in export to the Mainland of China , the dwindling demand from the US ; Hong Kong,  China;  
the Mainland of China ; and the EU brought down domestic export s by 24.7% during the period from 
2013 to 2019. Among the goods exported, co pper and articles thereof, tobacco, pharmac eutical 
products and organic chemicals , articles of apparel and clothing accessories  have been taking up 
81.1% of the total  domestic exports in 2019.  
5.4.  The MSAR formally began implementing  the Kimberley Process Certification Scheme through 
the participation  of the People 's Republic of China in the Kimberley Process in 2019. Implementation 
of this Scheme permits the introduction of rough diamond trade into and enables a favourable and 
stable market environment for the international trade in rough diamonds in Macao, China . Drawing 
on its strength as a commercial and trade cooperation service platform between China and PSCs, 
Macao, China will attract investors to enter its market and introduce  jewellery -related industry chai n 
to facilitate the development of  the manufacturing industry  towards high -end and high value -added 
products and processes, including diamond  polishing and  processing, diamond analysis and grading 
and jewel lery design , in the longer run . 
5.2  Gaming  
5.5.  The MSAR Government has been  ramping up its efforts to encourage the gaming industry t o 
reinforce non -gaming elements, including more diversified and creative non -gaming tourism and 
entertainment projects to cater the needs of different customers, family -friendly hotels and children 
facilities to ta rget family tourists, unique ly designed hotels and internationally renowned 
entertainment and shows for business travellers.  To promote intra -sectoral diversification of the 
gaming industry, the MSAR Government encourages the gaming operators to actively t ransform the 
gaming industry from high -end VIP -oriented to less -volatile mass-market gaming. Regarding 
inter-sectoral diversification, the MSAR Government aims to galvani ze the growth of non -gaming 
sectors, by encouraging the gaming operators to inject more no n-gaming elements within their 
establishments  and to  promote interactiv e growth of related industries through synergy.  
5.6.  The MSAR Government conducts on -going monitoring over the gaming sector to ensure the 
industry complies with the relevant gaming laws and regulations, consistently reviews the preventive 
measures established by the gaming operators to combat money laundering activities, and strictly 
oversees the accounting system, business records and internal control of junket promoters. The  
MSAR Government has recently finished the process of further revising anti -money laundering 
regulations  in 2019.   WT/TPR/G/ 402 • Macao, China   
 
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5.7.  During the pandemic, various border  controls or restrictions imposed by countries around the 
world in response to  COVID -19 have resulted in a  significant decline in the number of visitors to 
Macao , China, and these restrictions have had a profound impact on Macao , China 's gaming industry.  
As a result, the gross revenue from games of fortune  in the first five months of 2020 plummeted by 
73.74% to MOP 33 billion compared with the same period in 2019.  Nevertheless , the MSAR 
Government is confiden t in the long -term development of Macao , China 's gaming industry, and 
believes that the rebound in t he number  of tourists to Macao , China  after the pandemic  will drive 
the rapid recovery of Macao , China 's gaming industry as well as  other industries . 
5.3  Tourism  
5.8.  Over the past seven years , the overall tourism indus try continued to perform well , as the 
number of inbound visitors increased from 29.3 2 million in 2013 to 39.41 million in 201 9, the highest 
ever recorded.  The Mainland of China is still the primary  source while the number of visitors has 
been growing  steadily. The structure of visitor arrival s has gradually changed with the swelling 
proportion  of overnight  and family visitor s. The upgrading of infrastructure, especially urban 
transportation as well as land, sea, and air links with the Mainland of China, the Hong Kong  SAR, 
and abroad, has ratche ted up the attractiveness of the MSAR to visitors.  While the tourism industry 
of Macao , China  was booming during the period under review, the COVID -19 outbreak suddenly 
wreaked havoc , the tourism industry and the airline industry particularly suffered an u nprecedented 
blow, exerting a huge impact on the tourism industry in Macao , China  and the world. In the first 
quarter of 2019, the number of inbound visitors to Macao , China  totalled 10.3 million, while the 
number of inbound visitors in the first quarter of 2020 was only 3.21 million,  a slump of  68.93% 
over the same period  of 2019 . 
5.9.  The Macao 's history, a cultural exchange between East and West, has nu rtured its heritage 
consisting of a blend of cu ltures, peop le and architecture. Along with the establishment of the 
Committee for Development of the World Centre for Tourism and Leisure in 2015 and the 
announcement of the Macao Tourism Industry Development Master Plan  in 2017, the MSAR is  
dedicated to develop ing into a "World Centre of Tourism and L eisure " through promoting  the 
development of differ ent tourism products, e.g. leisure tourism, cultural tourism, community tourism, 
festive tourism, etc., to reach the goal of tourism product diversification and attract visitors from 
around the world for a  longer stay . In 2017, Macao , China  was designated as a new member of the 
UNESCO Creative Cities Network in the field of Gastronomy,  which brings an array of new 
opportunities to promote its unique gastronomic culture.  
5.10.   The MSAR will fully capitali ze on the leading technology in cloud computing, big data 
application and other areas to push forward smart tourism, with goals such as  monitor ing tourist 
attraction s and congested locations, so as to disperse and divert visitor flow s, and providing  guidance 
through smart tourism applications, which, in turn,  enhan ce visitors ' travel experiences .  
5.11.   As regards regional and international cooperation , the MSAR has been working closely with 
the tourism authorities of nearby regions to further strengthen communicati on and cooperation.  The 
MSAR  is actively seeking to join hands with other tourism authorities from the G BA and showcase 
the destination glamour of the G BA in innovative ways, encouraging the travel trade to tailor a variety 
of multi ple-destination themed tour itineraries and product s for various international markets. The 
MSAR has cultivated rich experiences and strengths in training and education in recent  years , which 
can be leveraged  on for the MSAR  to establish a tourism -related professionals training base  of the 
GBA. 
5.4  Financial Services  
5.12.   The MSAR Government has remained highly vigilant regarding international financial risks, 
with a view to safeguarding the stability of the financial system. Making every  endeavo ur to 
strengthen financial supervision, Macao , China  was ranked among the highe r tier of Asia/Pacific 
Group on Money Laundering (APG) members with a remarkable result achieved in the assessment 
of the effectiveness outcomes  in the APG evaluation in 2017 . For the technical compliance 
assessment which deals with completeness of legal a nd institutional framework, out of the 
40 Financial Action Task Force ( FATF) Recommendations, the MSAR obtained 37 compliant and 
largely compliant ratings in 2017 and upgraded the remaining three  to largely compliant ratings in 
August 2019 , making the MSAR  the first member that passe d all 40 FATF Technical Compliance 
Recommendations among all globally evaluated members.  WT/TPR/G/ 402 • Macao, China   
 
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  5.13.   The banking sector has been sustaining a steady growth in its asset scale and profitability, 
with its capital adequacy ratio and non -performing loan ratio at 14.73 % and at 0. 3% by the 
first quarter  of 2020 respectively, which reflect s the fact that the banking sector has been 
maintain ing a strong capital base and good asset quality.  
5.14.   As regards the insurance sector, while consistently strengthening supervisory measures and 
monitoring of the financial strength and risk management of insurance companies, the MSAR has 
finalized the legislativ e proposal on revising the current Macao Insurance Ordinance, through 
referencing the Insurance Core Principles (ICPs) set out by the International Association of Insurance 
Supervisors (IAIS) and taking into account the actual situation of the insurance in dustry, so as to 
improve the prudential supervisory framework of the industry and to further protect public interests.  
5.15.   The MSAR has also been devoting additional efforts to the development of financial services, 
which focuses on RMB clearing services betwe en China and PSCs and wealth management  and 
financial leasing . During the period under review, a  breakthrough was achieved in the development 
of the bond market with the issuance of Chinese central governm ent bonds and corporate bonds in 
the MSAR.  To furth er promote its development, the MSAR Government has promulgated regulatory 
guidance on bond market activities, including the Guideline on Management of Corporate Bond 
Issuance and Trading and the Guideline on Underwriting and Custody of Corporate Bond.  To promote 
the development of financial leasing services, two laws were approved by the Legislative Assembly, 
aiming to simplify the requirements and encourage the setting up of financial leasing companies in 
the MSAR.  
5.5  Telecommunications  
5.16.   In order to cope with the trend of convergence, the MSAR Government is formulating the 
framework of convergence regime , which shall include the terms of issuance of 5G licence. T he 
corresponding legislation  that leads to  convergence  of services  is expected t o be accomplished and  
introduced in the near future.   
5.17.   Mobile telecommu nications , Internet services, and fixed telecommunications services have 
been opened to competition. The MSAR Government issued licences for the installation and operation 
of a fixed public telecommunications network in 2013 to two fixed network operators.  During the 
period under review , the mobile telecommunication service sector continued to expand, while the 
fixed-line sector started to contract. Currently, there are five mobile operators , of which one is MVNO 
(mobile virtual network operator), ten Internet service providers (ISPs), ten Internet content 
providers (ICPs) and two fixed network operators.  
5.6  Other Key Focus  Industries  
5.6.1   Conventions and exhibitions ( MICE)  
5.18.   The MICE industry in Macao , China  has shown promising growth in recent years, with both the 
software and hardware of the industry upgraded and qualified for high -qualit y meetings. Gaming 
operators are encouraged to introduce  more services focusing on convention s and exhibition s, 
thereby boosting the competitive edge and attractiv eness of the industry. T he number of MICE 
visitors is expected to burgeon further following  the opening of the Hong Kong-Zhuhai -Macao Bridge.  
5.19.   The number of conventions and exhibitions held in Macao, China  increased from 1,030 in 2013 
to 1,536  in 2019, with the number of participants increasing from less than 1.0 million to over 
2 million . A total of 21 meetin gs with over 1,000 participants were  held in Macao, China in 2019. 
Compared with 2015, the gross value added of the industry  in 201 8 soared by 158.0%, amounting  
to MOP  3.5 billion and its relative importance to the economy went up by 0.5 percentage points.  
5.20.   The MICE sector is gaining budding intern ational recognition. Statistics released by the 
International Congress and Convention Association (ICCA) accredited 54 international meetings held 
in Macao,  China  in 2019, giving ranking s of 48th worldwide  and 12th in the Asia-Pacific region. For 
the exhibition segment, the 2019 report released by the Global Association of the Exhibition Industry 
(UFI) stated that Macao , China  has a reasonably strong performance in the trade fair sector.  WT/TPR/G/ 402 • Macao, China   
 
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5.6.2   Traditional Chinese medicines (TCM)  
5.21.   The development of TCM plays a pivotal role in the moder ate economic  diversification of the 
MSAR. The Guangdong and Macao Traditional Chinese Medical Science and Technology Industrial 
Park (the "GMTCM Park") has been  established  through regional cooperation . In addition, the State 
Key Laboratory for Quality Research in Chinese Medicine in the MSAR provides consulting services 
to GMTCM Park. It will further deepen  the cooperation in research and development  and production  
with the GMTCM Park. 
5.22.   The MSAR Government will speed up the development  of TCM industrialization by regulating 
TCM registration through  laws and regulations and deepening the regional cooperation in 
TCM industry.  Meanwhile , Macao, China will continue to introduce TCM to PSCs in Africa by adopt ing 
an approach of introducing medicine through treatments , facilitat e registered  products to enter the 
market  and strive for getting more products  licensed  for sale . 
6  PROSPECTS  
6.1.  Macao, China has made leaps forward to develop the economy in these two decades after the 
return of its sovereignty to China , reshap ing the economy in both economic and social aspects. This 
phenomenal  growth has indisputably been attributed  to the long -held open and liberali zed trade 
regime , which has been bringing  in foreign direct investment, technology and expertise for the 
economic development  of Macao, China . In this connection, Macao, China will continue to uphold the 
rules-based multilateral trading system in devising its trade polic ies in the future.   
6.2.  As the COVID -19 pandemic poses a significant impact on the global economy, Macao, China 
has to inevitably face unprecedented economic challenges. In response to the pandemic, the MSAR 
Government has introduced a package of economic stimulus measures with the aim to restore and 
stabili ze the economy. In the midst of  the global outlook clouded by uncertainties, Macao, China , 
emboldened by  its past experience grappling with economic downturn , is poised and competent to 
overcome challenges on multiple fronts. Macao, China has the resilience to handle some of the most 
challeng ing situations, and  will remain vigilant and responsive to minimi ze the negative impact on 
the economy by taking steps to expand investment in infrastructure and bolster internal demand in 
order to stimulate  economic growth.  Furthermore, Macao, China 's strong financial stability and 
ample financial reserves can also enable it to flexibly roll out economic policies to shore up its 
economy . 
6.3.  Looking ahead, Macao, China will, by perseverance , underpin  its position ing of "One Centre, 
One Platform " to consolidate its existing economic accomplishments and proactively explore new 
engines of growth through the participation in region al co-development initiatives.  Macao, China  will 
spare no effort to promote  moderate  economic div ersification as the cornerstone of its sustainable 
economic development . 
__________